Mixed US Stocks as Nasdaq Hits 2.25-Month High Amid Easing Inflation Concerns
- Easing Inflation Concerns: The US December core CPI rose 2.6% year-on-year, below the expected 2.7%, leading to a 2 basis point drop in the 10-year T-note yield to 4.16%, which in turn boosted stock prices and alleviated inflation worries.
- Energy Stocks Rise: WTI crude oil prices increased by over 1% to a 1.75-month high due to escalating geopolitical risks, as President Trump announced a 25% tariff on goods from countries “doing business” with Iran, driving strong performance in energy stocks.
- Credit Card Companies Decline: Following Trump's statement that credit card lenders would be “in violation of the law” if they do not cap interest rates at 10%, credit card companies fell for the second consecutive day, with Visa and Mastercard down over 3% and 2%, respectively.
- Mining Stocks Surge: With silver prices reaching an all-time high, Hecla Mining and Barrick Mining rose more than 3% and 2%, respectively, indicating strong performance in the mining sector and reflecting increased market demand for precious metals.
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US Stock Markets Poised for a Potential Relief Rally, According to Experts
Market Sell-Off: Commodity Trading Advisors (CTAs) have sold approximately $85 billion worth of U.S. equities over the last 30 trading sessions, marking the largest 30-day selling wave since the 2020 pandemic.
S&P 500 Correction: Analysts at Morgan Stanley suggest that the S&P 500 correction is nearing its final stage amid ongoing concerns related to the Iran war, with the index losing about 508 points or 7.39% over the past month.
Equity Sensitivity: The sensitivity of equities to rates is at its highest level in several years, with the 10-year Treasury yield closing at around 4.5%, which has pressured stock valuations.
Retail Sentiment: Retail sentiment regarding the S&P 500 ETF is currently in an "extremely bearish" territory, indicating a lack of confidence among investors in the market's near-term performance.
Powell States Fed Is Not Yet Confronting Policy Choices Due to Iran Oil Crisis – Emphasizes Central Bank's Awareness of the Larger Situation
Federal Reserve's Stance on Economic Impact: Jerome Powell stated that the Federal Reserve is not currently addressing the economic effects of the Iran war-induced oil supply shock, emphasizing the need to remain mindful of broader economic contexts when making monetary policy decisions.
Inflation Expectations: Powell noted that inflation expectations appear to be well-anchored beyond the short term, but acknowledged uncertainty regarding the economic impacts of the Iran war and rising energy prices.
Interest Rates and Demand: He clarified that the Fed's primary tool for controlling interest rates affects demand rather than supply, indicating that the rise in oil prices is a supply-side shock.
Monitoring Inflation: Powell stressed the importance of carefully monitoring inflation expectations, as a series of supply shocks could lead the public to anticipate higher inflation over time, impacting businesses and households.
Goldman Sachs Warns Market Is Overly Hawkish on Fed Rate Projections Amid Rising Oil Prices from Iran Conflict: Report
Goldman Sachs Analysis: Goldman Sachs reported that markets are currently too hawkish regarding the Federal Reserve's monetary policy outlook, influenced by ongoing geopolitical tensions and rising crude oil prices.
Interest Rate Projections: The probability of the Federal Reserve maintaining interest rates in the current range of 3.5% to 3.75% through 2026 is estimated to be between 79% and 97%, according to the CME FedWatch tool.
Market Sentiment: The market has priced in a larger hawkish shock than historical experiences would suggest, indicating heightened expectations for future interest rate adjustments.
Further Updates: For ongoing updates and corrections related to this developing story, readers are encouraged to follow Stocktwits.
Leading Pre-Market Gainers Today — ELAB, ITRM, LTRN Among Stocks Rising Ahead of Market Open
PMGC Holdings Update: PMGC Holdings announced an amended deal with MOA Life Plus to conduct human trials for EL-22 and EL-32, focusing on muscle and lean mass preservation.
Iterum Therapeutics Developments: Iterum Therapeutics filed a winding-up petition in Ireland, set for a hearing on April 13, 2026, while also announcing a significant increase in its stock value.
Lantheus Pharma Progress: Lantheus Pharma received FDA clearance for its new drug application for STAR-001, aimed at treating relapsed or refractory CNS malignancies, and saw a notable rise in its stock.
Market Sentiment: U.S. equities showed positive movement amid ongoing tensions in the Middle East, with retail sentiment regarding the S&P 500 ETF categorized as "extremely bearish."
Guggenheim CIO Cautions That Oil Shock May Cause 10% Decline in US Stocks – S&P 500 Set for Fifth Consecutive Weekly Loss
Market Decline: U.S. equities have seen a significant decline of nearly 7% since the onset of the Iran war in February, with the S&P 500 and Nasdaq Composite currently facing their fifth consecutive weekly losses.
Investor Sentiment Shift: Guggenheim's CIO, Anne Walsh, highlighted that the primary risk to U.S. equities is a shift in investor sentiment rather than inflation, suggesting that persistent high fuel prices could negatively impact consumer and market sentiment.
Potential Market Impact: Walsh warned that if crude oil prices remain elevated around $100 per barrel for three months, U.S. equities could experience a meaningful decline of about 10%.
Investment Recommendations: To mitigate risks, Walsh advised investors to diversify their portfolios, focusing on fixed-income securities, equities, and gold as potential avenues for investment.
Nasdaq and S&P 500 Futures Climb as Iran Deadline Postponement Eases Concerns: Key Stocks Keeping Traders Active Today Include NVDA, META, TSLA, RCKT, and CCL
President Trump's Deadline Extension: President Trump has extended the deadline for potential strikes on Iranian energy infrastructure to April 6, easing immediate geopolitical fears and allowing for ongoing peace negotiations.
Stock Market Reactions: Following the deadline extension, U.S. stock futures rose by 0.3%, despite retail sentiment towards major ETFs showing bearish trends amid high trading volumes.
AI and Tech Stocks: Nvidia faces backlash over AI developments, while ARK Invest continues to buy into Tempus AI, indicating a divergence within the AI sector. Companies like Microsoft and Meta are also navigating challenges related to legal setbacks and market performance.
Pharmaceutical Developments: Novartis is acquiring a U.S.-based biotech company for up to $2 billion, while Rocket Pharmaceuticals and Novo Nordisk are gaining attention following FDA approvals for new treatments, highlighting significant advancements in the pharmaceutical sector.
US Stock Markets Poised for a Potential Relief Rally, According to Experts
Market Sell-Off: Commodity Trading Advisors (CTAs) have sold approximately $85 billion worth of U.S. equities over the last 30 trading sessions, marking the largest 30-day selling wave since the 2020 pandemic.
S&P 500 Correction: Analysts at Morgan Stanley suggest that the S&P 500 correction is nearing its final stage amid ongoing concerns related to the Iran war, with the index losing about 508 points or 7.39% over the past month.
Equity Sensitivity: The sensitivity of equities to rates is at its highest level in several years, with the 10-year Treasury yield closing at around 4.5%, which has pressured stock valuations.
Retail Sentiment: Retail sentiment regarding the S&P 500 ETF is currently in an "extremely bearish" territory, indicating a lack of confidence among investors in the market's near-term performance.
Powell States Fed Is Not Yet Confronting Policy Choices Due to Iran Oil Crisis – Emphasizes Central Bank's Awareness of the Larger Situation
Federal Reserve's Stance on Economic Impact: Jerome Powell stated that the Federal Reserve is not currently addressing the economic effects of the Iran war-induced oil supply shock, emphasizing the need to remain mindful of broader economic contexts when making monetary policy decisions.
Inflation Expectations: Powell noted that inflation expectations appear to be well-anchored beyond the short term, but acknowledged uncertainty regarding the economic impacts of the Iran war and rising energy prices.
Interest Rates and Demand: He clarified that the Fed's primary tool for controlling interest rates affects demand rather than supply, indicating that the rise in oil prices is a supply-side shock.
Monitoring Inflation: Powell stressed the importance of carefully monitoring inflation expectations, as a series of supply shocks could lead the public to anticipate higher inflation over time, impacting businesses and households.
Goldman Sachs Warns Market Is Overly Hawkish on Fed Rate Projections Amid Rising Oil Prices from Iran Conflict: Report
Goldman Sachs Analysis: Goldman Sachs reported that markets are currently too hawkish regarding the Federal Reserve's monetary policy outlook, influenced by ongoing geopolitical tensions and rising crude oil prices.
Interest Rate Projections: The probability of the Federal Reserve maintaining interest rates in the current range of 3.5% to 3.75% through 2026 is estimated to be between 79% and 97%, according to the CME FedWatch tool.
Market Sentiment: The market has priced in a larger hawkish shock than historical experiences would suggest, indicating heightened expectations for future interest rate adjustments.
Further Updates: For ongoing updates and corrections related to this developing story, readers are encouraged to follow Stocktwits.
Leading Pre-Market Gainers Today — ELAB, ITRM, LTRN Among Stocks Rising Ahead of Market Open
PMGC Holdings Update: PMGC Holdings announced an amended deal with MOA Life Plus to conduct human trials for EL-22 and EL-32, focusing on muscle and lean mass preservation.
Iterum Therapeutics Developments: Iterum Therapeutics filed a winding-up petition in Ireland, set for a hearing on April 13, 2026, while also announcing a significant increase in its stock value.
Lantheus Pharma Progress: Lantheus Pharma received FDA clearance for its new drug application for STAR-001, aimed at treating relapsed or refractory CNS malignancies, and saw a notable rise in its stock.
Market Sentiment: U.S. equities showed positive movement amid ongoing tensions in the Middle East, with retail sentiment regarding the S&P 500 ETF categorized as "extremely bearish."
Guggenheim CIO Cautions That Oil Shock May Cause 10% Decline in US Stocks – S&P 500 Set for Fifth Consecutive Weekly Loss
Market Decline: U.S. equities have seen a significant decline of nearly 7% since the onset of the Iran war in February, with the S&P 500 and Nasdaq Composite currently facing their fifth consecutive weekly losses.
Investor Sentiment Shift: Guggenheim's CIO, Anne Walsh, highlighted that the primary risk to U.S. equities is a shift in investor sentiment rather than inflation, suggesting that persistent high fuel prices could negatively impact consumer and market sentiment.
Potential Market Impact: Walsh warned that if crude oil prices remain elevated around $100 per barrel for three months, U.S. equities could experience a meaningful decline of about 10%.
Investment Recommendations: To mitigate risks, Walsh advised investors to diversify their portfolios, focusing on fixed-income securities, equities, and gold as potential avenues for investment.
Nasdaq and S&P 500 Futures Climb as Iran Deadline Postponement Eases Concerns: Key Stocks Keeping Traders Active Today Include NVDA, META, TSLA, RCKT, and CCL
President Trump's Deadline Extension: President Trump has extended the deadline for potential strikes on Iranian energy infrastructure to April 6, easing immediate geopolitical fears and allowing for ongoing peace negotiations.
Stock Market Reactions: Following the deadline extension, U.S. stock futures rose by 0.3%, despite retail sentiment towards major ETFs showing bearish trends amid high trading volumes.
AI and Tech Stocks: Nvidia faces backlash over AI developments, while ARK Invest continues to buy into Tempus AI, indicating a divergence within the AI sector. Companies like Microsoft and Meta are also navigating challenges related to legal setbacks and market performance.
Pharmaceutical Developments: Novartis is acquiring a U.S.-based biotech company for up to $2 billion, while Rocket Pharmaceuticals and Novo Nordisk are gaining attention following FDA approvals for new treatments, highlighting significant advancements in the pharmaceutical sector.
